'Junk Stock' Trading Time

Despite some negative news flow, the market is shrugging it off and trading with a positive bias.

Nasdaq breadth is running about 1200 to 800 positive and we have some strength in biotech, chips and retail, while precious metals, steel and commodities are the laggards.

As I expected, there is some holiday-related speculative action in small caps. I'm playing some names like Taser International (TASR), Perion Network (PERI), Sarepta Therapeutics (SRPT) and China Auto Logistics (CALI) and digging for some more.

PERI is one that is of particularly interest. It is an Israeli company, which is a bit of a negative, but they did an accretive acquisition recently and are expected to grow earnings 80% to $1.57 in 2013, according to MarketSmith. It has been acting well and I'm watching for a breakout move over $9.50.

I'm going to keep digging and see what else pops up but the theme today is day trading "junk stocks." That means move fast and maintain a very high level of discipline. If a stock isn't cooperating, sell first and ask questions later

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